Preparing your taxes for 2019? Here is what you need to consider

To help you gear up for this year’s tax filing, we have prepared a list of essential follow-ups that you should comply with, for a fluid tax transaction, particularly when facing a time crunch: 

Most of the SMBs work with limited resources- both human and non-human. And, more often than not, they fail at maintaining regular records. Call it a shortage of hands or lack of time, small and mid-sized businesses often struggle to arrange their data well in time for the tax filing day. Staying unorganized and not maintaining documents may lead to more hassles, and it becomes a rather tedious task to file accurate and timely tax returns during the tax season. So, it is suggested to be organized and maintain records in a cohesive manner.

 

To stay organized and accurate, it is inherently important to monitor your expenses. For maintaining your books correctly, it is recommended to avoid posting expenses in the “miscellaneous” category, rather you must assign a particular expense to a specific account for accurate calculations later. By doing this, it would be more viable to instantly cross-check your entries when filing your return. 

Use accounting software, such as QuickBooks, to cater to your accounting needs effectively. By doing so, you can maintain your records without any difficulty and forward relevant details online to your accounting professional. For your tax filing needs, using tax software, such as Drake tax software hosting, adds efficiency to your tax process. Cloud-based tax software is simply the desktop software that is hosted on the cloud. 

Being an accountant or a tax professional, it is quite natural to have workload piled up on you. It might seem to you that hard copies of your records are easier to organize, but the truth is there is a high probability of losing your important receipts, payments, and files when stored locally. Losing even the most minute piece of information may prove to be an infuriating deal for you, given the already critical tax season. The more paper you use for record-keeping, the more problematic it gets for you to organize them. Instead, for a hassle-free tax season, you can simply scan and save your files on the cloud. 

CPAs, accountants, and owners of small and medium-sized businesses should not keep tax planning for the last-minute. Instead, it should be a part of your regular financial planning. Tax planning can help you to save money by helping you to take the right decisions at the right time and planning according to the new rules and regulations. So, to avoid fines due to late tax payment and to make your financial planning strong, make sure tax planning is an integral part of your regular meetings. 

Falling into the trap of procrastination is easy, but to effectively plan your taxes and to file them within the deadline, it is important that tax planning is on your company’s agenda. Simply including technology, such as the cloud for Tax software solutions, with some concrete planning that you can stick to, can help you witness change and increase the efficiency of your organization. 

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